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As the current economic situation continues to take its toll on
everyone's pocketbook, Canadian women have more incentive this year to
take charge of their financial future. While the recent Rethink
Retirement survey by Desjardins Financial Security reveals that half of
Canadian women are considering postponing retirement by an average of
six years due to market conditions, it also shows that women aren't
simply accepting these setbacks. In fact, women are adopting a more
take-charge, can-do attitude towards their finances while making the
most of what they have.
Debunking the myths about women and money
While more men than women have traditionally been involved in financial
matters, the picture is changing: 20 per cent of women admitted having
little or no interest in preparing for retirement, compared to 27 per
cent of men; 55 per cent said they hate being told that they are not
saving enough for retirement, compared to 62 per cent of men; and only
31 per cent said they would rather not know how much they need to save,
compared to 37 per cent of men.
"Women may be getting over what you could call the Sex and the City
money mentality, where the main characters did not give much thought to
saving for a rainy day," said Karrina Dusablon, Director, Education
Centre and Global Management at Desjardins Financial Security.
"Budgeting and putting money
aside for retirement are hardly sexy plot themes, but many smart and
successful women are becoming more financially-savvy, and that's good."
More action, less guilt
Thirty-six per cent of women admit to feeling guilty that they are not
saving enough for retirement and 38 per cent believe they will never be
able to accumulate enough retirement savings. These two results are
likely contributing to why money is still the most often cited source
of stress among men and women. However, many Canadian women have said
they are prepared to make the following changes to save more for
retirement:
- 84 per cent would postpone a major purchase to avoid relying on
financing or credit;
- 79 per cent would take less expensive vacations;
- 69 per cent would bring lunch from home rather than eating at a
restaurant;
- 66 per cent would significantly reduce the use of their car;
- 61 per cent would reduce spending on sports or cultural activities; and
- 56 per cent would consider getting rid of the household's second car.
The only compromise that six out of ten women seemed reluctant to make
in the name of financial improvement was reducing spending on
children's activities, compared to 68 per cent of men.
What next?
Budgeting seems to be on many women's minds with 28 per cent of
respondents mentioning it as their number one financial priority in
2009, while 24 per cent said they would make it a priority five years
from now. Paying off the mortgage and other debts were mentioned second
as a priority this year among 14 per cent of respondents respectively.
Almost 20 per cent of women said they would focus on saving for
retirement and 12 per cent on paying off their mortgages five years
from now.
"Every new year, women tend to make resolutions about improving their
health and wellness," said Ms. Dusablon. "We'd suggest that women pay
special attention to their financial health by making one simple
financial improvement in 2009. For example, always pay for food,
including restaurant meals, in cash. Also, if you are already
contributing the maximum amount to your RRSP, consider opening a
Tax-Free Savings Account (TFSA) with what you have saved as the result
of your cost-cutting measures. The best thing about financial fitness
is that you get immediate gain with very little pain."
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